Development of marketing strategy for real estate condotel da nang

TABLE OF CONTENT INTRODUCTON CHAPTER COMPANY INTRODUCTION 1.1 About T&T Group 1.1.1 Vision 1.1.2 Mission .7 1.1.3 Core value 1.1.3 Company organization structure 1.2 Marketing Activities of the Company 1.3 Marketing objectives: 1.3.1 Objectives 1.3.2 Content of Marketing Strategy: 1.3.3 General idea product 10 CHAPTER 2: METHODS OF IMPLEMENTATION 12 2.1 Real estate and Marketing of Real estate 12 2.1.1 Definition of Real estate 12 2.1.2 Definition of marketing and Marketing in Real estate .12 2.1.3 What is a 'Marketing Strategy' 13 2.2 Method of implementation (research) 14 2.2.1 Definition of Secondary & Primary research: 14 2.2.2 Qualitative research 19 CHAPTER 3: COLLECTION AND ANALYSIS OF INFORMATION 23 3.1 Collection and analysis from Secondary Research 23 3.1.1 Condotel Real estate in DaNang Market 23 3.1.2 Market Analysis for Real Estate Project 24 3.1.3 ANALYSIS SWOT 32 3.1.4 Conclusion USP of Product: .33 3.2 Collection and analysis from Primary Research 34 3.2.1 Primary research to identify the target customers 34 3.2.2 Result and conclusion .40 CHAPTER 4: DEVELOP STRATEGY MARKETING MIX 45 4.1 Product 45 4.1.1 Product Positionning 45 4.1.2 Develop Product .47 4.2 PRICE (The amount of money paid by customers to purchase the product.) .54 4.2.1 Definition of price: 54 4.2.2 Pricing strategy 55 4.3 PLACE (channels, coverage, assortments, locations, inventory, transportation, logistics) 63 4.3.1 Definition of Place Marketing 63 4.4 PROMOTION (Promotion: advertising, personal selling, sales promotion, public relations 65 4.4.1 Promotion strategy for T&T Twin Towers (Condetel in DaNang) 65 CHAPTER 5: CONCLUSION 72 5.1 Fiding from the Intership Report (Research and Marketing strategy): 72 5.1.1 Research finding .72 5.1.2 Marketing strategy 78 5.2 Recommendation for Marketing Activities of T&T Land Company: .80 REFERENCE: 82 INTRODUCTON Development strategy of Marketing take an important role in each Company, so does our Company T&T Land A marketing strategy helps Company create products and services with the best chances for making a profit This is because marketing strategy starts with marketplace research, taking into consideration your optimal target customer, what your competition is doing and what trends might be on the horizon Using this information, you determine the benefit customers and clients want, what they‘re willing to pay and how you can differentiate your product or service from the competition T&T Land – a member of T&T Group is in the field of real estate, our products range from medium to high grade, including ground floor, apartment and vacation real estate Some of project that our Company have successfully implemented such as T&T Riverview Project - Hanoi ( Apartments), Long An Project in HoChiMinh City – in the South of VietNam (ground land), T&T Victoria in Nghe An (Luxury Apartment with 45 utilities and services in the middle of VietNam)… Continue to inherit that success, in this time, we focus on investing Vacation Property, especially in DaNang province – the most living city in Vietnam (owns MyKhe Beach is one of six most beautiful beach in the World) According to Statistics from the General Department of Tourism VietNam, in 2017, the country receives 12.9 million international visitors and 50 million domestic visitors This figure exceeds the target of 2025 and is forecast to continue to grow in 2018 According to Ms Nguyen Hoai An, representative of CBRE Limited, The number of tourists increased each year In 2016, tourist growth of 30%, in 2017 also grew over 29% The rapid growth of tourists has caused the supply shortage This is the reason why the vacation property and specially Condotel (Apartment combine Hotel) is boomming development According to the statistics of the Vietnam National Administration of Tourism, in May 2018, total visitors to Da Nang are estimated at 3,208,315, of which international visitors are estimated at 1,356,272, an increase of 51.3% over the same period of 2017 Total revenue is estimated over 11,000 billion, up 53.6% over the same period in 2017 Therefore, DaNang is potential market for investing vacation property The Marketing Problem of T&T Company is: How to develop an effective Marketing strategy for the Vacation Real estate project in DaNang Marketing objectives: Objectives:     Determine the target customers/consumers Product positioning and developing Build up Marketing strategy 4ps to push sales and gain benefits Ensure product in the market Content of Marketing Strategy that I must in this Intership report:  Researching market to determine targeted customers  Positioning product  Clearly positioning the brand and image T & T Towers on the Vacation real estate market  Making the difference in the content of communication in accordance with the actual situation of the product and market  Highlighting the strengths of the project to creat a competitive edge that makes sales more effective  Developingthe marketing strategy and the 4ps program Approaches and problem solving method: in this Report I use Secondary data and Qualitative research (interview focus group) Combination of methods increases reliability and gets the most successful results With Secondary date, I search information through internet document as Savill or CBRE, which are reputation Company in Research Market in VietNam and in the International In addition, I collect information from Sales, Competitors, professional in Property I use secondary data to analyze market (PESTEl), analyse SWOT of the Project Situation of real estate market in Danang by secondary research: The condotel on Da Nang market is rising rapidly, making the market become hot and competitive Currently tourism resort is still a potential development segment and a very important role for the economy of Da Nang city, in which coastal projects dominate over (about price and absorption) When it comes to primary research, I conduct interview focus group (qualitative research) I conduct Quanlitative research because by taking survey, I can look at the numbers to quantify customer opinions, attitudes and so on to create results from a larger sample size with investing Condotel in DaNang I am looking forward to finding the bahaviour and tendency of customer investing or buying Condotel From the researching market and behaviour of customer in Real estate field, I conduct interview focus group include groups: Group1: A group of professional real estate investors They are not limit their age may be from 30 to 55 years old They are very smart, sophisticated and careful when they decide to buy or invest They usually invest in surfing, it means they gain benefit from buy and sell real estate quickly Group 2: The young rich family They are from 30 – 40 years old with high income They want to invest to gain more benefit and accumulate assets for children In whole, they invest to accumulate for future Group 3: The group wants to assert social status They are emerging rich people who quickly be the rich thanks to the online business, store owners, stock investors, bitcoin… They are quite young from 28-45 years old They want to assert themselves by showing their property real estate Almost question in the interview is open – question, which will encourage interviewee share their point of view and comfortable to generate ideas The interview will be control by me It includes two part: Part 1: Administration introduces about topic and asks interviewee about their information and some of general question These questions relate to the bahaviour of customer of Condotel Part 2: Administration ask question from Interview guide, interviewee focus on question about: product, the Price, the demand of customer for Condotel and experience of consumers… After doing qualitative research by interview focus group I find: Awareness of Condotel Factors affect the customer's decision to buy Condotel Five factors to consider when investing Condotel:      Location of project: Legal certainty Profitability assessment Design & scale Investor - Management unit Customer’s concern: Factors related to the project - Price for sublease? - Location, traffic - Delivered furniture, utilities and services - Progress of the handover? - The time of hand-over determines the time when the apartment they invest into exploited profits, so this is also the factor investors consider Customer’s expectations Tools of Communication or Marketing Marketing 4ps:     Product Price Place Promotion CHAPTER COMPANY INTRODUCTION 1.1 About T&T Group LEGAL REPRESENTATIVE: Mr Do Quang Hien - General Director QUALITY OF SUBSIDIARIES, MEMBER COMPANIES, JOINT VENTURES COMPANIES: More than 60 companies ―The goal of becoming a leading economic group in the country and in the region; Doing business in many fields and sectors.‖ T&T Group is a multi-disciplinary group, which is famous and reputious company in Vietnam The scope business of T&T Group involves Finance & Investment, Transport Infrastructure, Port & Logistics, Agriculture, Forestry & Fisheries, Industry and Trade, Minerals, Energy & Environment, Health, Education & Sport and specialy Real estate Real estate is one of the key sectors of the T&T Group, which is managed by T&T Land Urban and Industrial Park Development JSC (T&T Land) - a member of T&T Group With strong financial strength, T & T Group is currently the owner of major real estate projects such as: Apartment, trade center building, office for rent in Hanoi and Hochiminh City The resort, ecological tourism in Phu Quoc, Nha Trang where own the best beautiful beach in Vietnam Urban areas, industrial zones in Hanoi and Hochiminh City 1.1.1 Vision T & T Group is constantly striving to become a nation's richest economic organization, bringing great value to the social community and enhancing the value of our employees' lives through the material and spiritual development conditions 1.1.2 Mission To become a strong, multi-national, sustainable economic corporation, and develop the brand name of T&T Group be prestigious and competitive in the country and internationally 1.1.3 Core value "Solidarity and Cooperation" creates the strength of the corporation "Dedication and Prestige" for every customers and partners "Innovation in each product, service and field of activity "Profit and Efficiency" is the basic value of business activities "Professional and standardized" is the core value of corporate cultu Events : Launch, training, mini events, music shows, etc When we advertise marketing-communication events, we can utilize the digital arena to get the word out Utilize website, email and social media Printed Ads : posters, banners, thank-you gifts, packaging and more Printed advertisements like these stick around in people‘s homes reminding them of us and our products or services Radio and Television: Run shorter 60-second television commercials and VOV Chanels during rush hours Press releases published in the online newspapers : vnexpress, dantri, thanhnien, cafef, vneconomy, etc 68 Marketing & Comunication Plan (Stage 1: from - 11.2108) STT Categories Details Cost Percentage Note General expenses for the whole project Branding Agency consulting fees Brand Strategy (Saatchi & Saatchi) 3,397,502,400 20.23 Model model ratio 1/100 in Hanoi, and HCM 1,724,000,000 10.26 Website Website dự án + Host + tên miền (10 host, sdung năm) 89,441,000 0.53 OOH - Hoarding Hoarding around project 418,700,000 2.49 OOH OOH in airport 3,677,320,000 21.89 Film+ picture+ -Film of T&T Twin Towers (Condotel) - Teaser Film 2,269,640,000 13.51 app - 3D interior, exterior - App 360 - Coloring the total area 69 months Total 6,455,101,000 Marketing & Communication Stage 1 Radio VOV advertising 835,440,000 4.97 Advertise on gold frame Advertise TVC Television advertising, TVC on air & Clip plane Booking Pr 1,533,763,636 9.13 1,633,136,368 9.72 365,300,000 2.17 PR & Newspaper Advertising images, information of project on Heritage and Forbes 70 note VTV1, VTV3 at 19h50 and game show hot of Vietnam Television exploration and orientation market - Dealer to develop detailed product, policy, investment and customer analysis Investors evaluate and coordinate the schedule Online Marketing Online banner & Facebook Saleskit 2,827,664,100 16.83 347,000,000 2.07 Stage Marcom cost 7,542,304,104 Total price event 2,800,000,000 TOTAL PRICE 16,797,405,104 Marketing & Communication Stage 2&3 27,202,594,895.6364 TOTAL 44,000,000,000.0000 Account 1% turn over 71 CHAPTER 5: CONCLUSION 5.1 Fiding from the Intership Report (Research and Marketing strategy): 5.1.1 Research finding In this Report I use Secondary data and Qualitative research (interview focus group) I combine methods to increase reliability and get the most successful results With Secondary date, I search information through internet document as Savill or CBRE, which are reputation Company in Research Market in VietNam and in the International In addition, I collect information from Sales, Competitors, professional in Property I use secondary data to analyse market (PESTEl), analyse SWOT of the Project The result: With the explosion of the Condotel, DaNang will be overshadowed by high-end resorts However, the experts said that there is still room for development of to stars hotels and resorts because the exploiting capacity is currently very good (about 70%) The DaNang market is potential to developing Condotel, especially the high-end class in the prime location MyKhe Beach DaNang Market is potential maket for tourism with the advantage of location, nature condition, developing economy policy, synchronous infrastructure development 72 Finding the SWOT of the Product: STRENGTH WEAKNESS - The prime location, located on Vo Nguyen Giap street, opposite to the East Sea square, has sea view - The invester (Kim Long Nam Group) has no real estate products on the market, no reputation Locate in the center of DaNang City - where regularly occurs entertainment, festival and important events - The project has not cooperated with famous hotel management units in the world - Not having resort and tourism complex - Not form to stay as home - Average size of Apartment Condotel is large compared to condotel products in - The project has a potential profit the market - A lot of Facilities OPPORTUNITY THREAT - Be profitable from future price increases - The real estate supply in the Da Nang market is over, so the competitiveness is great - Da Nang tourism market is still developing well, so there is a chance to develop Hotel Appartment or Condotel - The trend of investing in the coastal area of My Khe, Vo Nguyen Giap street is hot, (many large and high-end projects with high price - Condotel Da Nang market is very competitive because there are many large real estate investors have set foot in and built streng brand name with customers such as VinGroup, Sun Group, Alphanam Group, Coco Bay, Prestigious investors such as Alphanam, Sungroup and Sovico also cooperate with reputable five star hotel management companies such as Sheraton, Novotel, Wyndham ) - Condotel Danang market also has many projects that own a beautiful location, the resort exchange system, full facilities, services - The political situation in Da Nang is complicated, some real estate owners are 73 under investigation which can affect the customer‘s deciding to buy/invest USP of Product:  DaNang Condotel project located in DaNang is the most livable city in Vietnam This project is on MyKhe Beach which is the top of best beautiful beach in the World In addition, in here is the center of DaNang city, Convenient connection to nearby tourist attractions in DaNang & Hoian  Perfect position, ensuring profitability  Twin towers Condotel with the highest height of 190m are allowed to be built along the coast This is an advantage to promote communication and sales.Impress to Towers Architecture  Project has fully legal permits and land using rights  Almost of Condotel Apartments own sea view which is very nature with sea, air, sun, wind  Equipped with star international quality facilities: highest seaside Skybar / Sky restaurant in Da Nang, Infinity overflowing swimming pool with 1500m2 Automatic underground parking Shophouse center, ballroom sea view The other facility such as: spa, gym, massage, playing ground When it comes to primary research, I conduct interview focus group (qualitative research), saising the questionares to ask to know the behaviour of customer and their demand The finding from interview focus group: Awareness of Condotel: Almost of interviewees often go travel to Beach for Vacation and know the Condotel in Vietnam They are also very excited when talk about this They think that Condotel is still a hot trend in the real estate market and bring a high return on investment Potential investment market is Da Nang, Nha Trang, Phu Quoc, Ha Long 74 Consumers want to find the invest chanel with high profit but safety They are seem to be interest in buying Condotel Property to get more money Factors affect the customer's decision to buy Condotel Consumers consider quality products from reputable investors; research about the product and the sales policy Most of the Vietnamese people who buy real estate are desirous of long-term ownership, both for current business purposes and have an asset to their descendants later The legal document has not been issued cause many customers have reservations with condotel segment in recenty Five factors to consider when investing Condotel: Location of project: Legal certainty Profitability assessment Design & scale Investor - Management unit Customer‘s concern: Policy-related factors from the Investor Price and loan policy Commitment to finance from the Investors? The most important for them is pricing policies and Investor‘s financial support policies as well as post-acquisition financing commitments leases, etc.) as these factors determine the amount of capital as well as the initial financial they need to prepare when investing/ buying in the project Factors related to the project - Price for sublease? - Location, traffic - Delivered furniture, utilities and services - Progress of the handover? 75 - The time of hand-over determines the time when the apartment they invest into exploited profits, so this is also the factor investors consider Customer’s expectations Consumers like the Condotel in coastal, beach where is famouse destination for tourist and vacation such as Quy Nhon, Phu Quoc, Danang, …Specially they are keen on the central location They are willing pay money for the Apartment Condotel on Beach with 5* quality if it built and operate by reputable Investor and Management with full 5* utilities and services The range price they can pay for an Apartment like that 50 – 70 million Vietnam per m2 Young family prefer Apartment with bed room, and then 2-bed room Professionor investor also like and – bed room This is because of its reasonable price, high liquidity and great resale Among of them, there are more people prefer 1-bed room than – bed room Alittle of them, who are very rich, want to assert theirself like 3-bedroom Apartment because of expensive price Most of them expect a Condotel with swimming pool, spa, gym center, restaurant, shopping center, and Shopping house… which increase the value of a Condotel Apartment Tools of Communication or Marketing when it comes to Communication tool, all of interviewees said that they often read online News in the chanel such as Baomoi.com, Vnexpress, cafef, Vneconomy, thanhnienonline Then, they will be attracted by impressive visual in billboard specially in airport or advertising on Heritage Magazine All of them own car, the young family and a half of professional investor and the orther often hear VOV voice to update traffic situation These people very rich with high level status in social dont have more time to hear VOV If have time they go out play golf 76 For Television, they usually watch Vtv1 and VTV on 7pm to 10pm, economy and social official news 77 5.1.2 Marketing strategy I have already done these task:  Research market to determine targeted customers  Positioning product: Luxury, high – end product  Clearly position the brand and image T & T Towers on the Real estate market  Highlighting the strengths of the project creates a competitive edge that makes sales more effective  Develop marketing strategy 4ps: Product: Brand name T&T Twin Tower which is the Luxury Condotel 5* (The "more for more" strategy to posit the product) The "more for more" strategy is a very effective strategy when it is placed in a stable economy and market with many wealthy prospects USP of Product (Unique Selling Point) The project is located at the heart of My Khe Beach, which is one of the top most beautiful beaches on the planet 78 Located in front of the Sea Park, which is regularly hosts important cultural activities of the city and the Country International Operations Management Unit The highest Twin tower by MyKhe Beach in Danang Own the highest Skybar / Sky restaurant seaview in DaNang Own luxury Ballroom viewsea There are commercial areas in the block of the building (the only twin tower with shophouse by MyKhe Beach) Have Skypool (up to 1500m2) Underground and automatic parking Other high-end facilities such as Spa, massage, playground area Form of ownership: Long-term (50 years) Almost of Condotel Apartment have sea view, this will satisfy Customers We also build up the kind of Apartment of Condotel with fully Utilities and services Price Premium Pricing We Use a high price where there is a unique brand This approach is used where a substantial competitive advantage exists and the marketer is safe in the knowledge that they can charge a relatively higher price Such high prices are charged for luxuries such as Cunard Cruises, Savoy Hotel rooms, and first class air travel Using Premium Pricing strategy for our product because Our Condotel products are positioned in the premium segment, the position and value is higher than competitors However to calculate the price of the product, I must be consider to rating points for the criteria: Location, the investor/commitment, usp of product, architecture, construction,apartment design, utility/service, sale policy, compare to the competitor‘sprice 79 Expected price 90 million per m2 Place To sell successful product we set up combine place marketing includes distribution agents, sale of Company and sale office with Model house If we directly distribute by sales force of the Company, we will spend a lot of money and time to sell the project But if we control sales and invite agents to sell product, it is more effective Howerve, we must pay commission/bonus to them It is win – win business cooperation Promotion TARGET CUSTOMER NO CHANELS Professional Young Investors family Others Press releases X X X Radio and Television X X X Printed Ads X X X Referrals X X Social Ads X X X Viral video X X X Events X X X 5.2 Recommendation for Marketing Activities of T&T Land Company: T&T should focus on Marketing because it takes a very important role in the development of the Company The organizational structure of the marketing department should be clearly divided 80 Staff should be regularly sent to study, work to improve their professional Strengthen cooperation or building good relationship with Communication & Marketing Agency, relationship with Press Agency to to report and deal with the crisis Marketing department should hold social Event to advertise Branding name of Company 81 REFERENCE: http://www.marketingteacher.com/marketing-mix/ http://marketingmix.co.uk/ Kotler and Armstrong (2010) https://www.investopedia.com/terms/r/realestate.asp http://www.landtax.co.il/essays/rostowicz/marketing-of-real-estate.pdf http://www.campaigntrack.com/the-seven-ps-of-property-marketing/ http://www.businessdictionary.com/definition/intensivedistribution.html Investopedia https://www.investopedia.com/terms/m/marketingstrategy.asp#ixzz5QX09jkKO 82 ... METHODS OF IMPLEMENTATION 12 2.1 Real estate and Marketing of Real estate 12 2.1.1 Definition of Real estate 12 2.1.2 Definition of marketing and Marketing in Real estate ... Competitors, professional in Property I use secondary data to analyze market (PESTEl), analyse SWOT of the Project Situation of real estate market in Danang by secondary research: The condotel on Da Nang. .. investing in DaNang in the field of Infrastructure, Real esteate, applying smart device in Hotel, Condotel, … E – Environmental The real estate market in DaNang The condotel on Da Nang market is